McDonald’s (MCD) has announced that it is permanently leaving Russia after more than 30
years of operation in the country and will write-off of up to $1.4 billion U.S. as a result.
The fast-food restaurant chain said it has initiated a process to sell its Russian business after
temporarily closing its restaurants in the country following the invasion of Ukraine, the company
said in a written statement.
McDonald’s said the humanitarian crisis in Ukraine amid the war, and the unpredictable
operating environment, mean it is no longer tenable to operate in Russia.
McDonald’s is pursuing a sale of its entire portfolio of restaurants to a local buyer and will
remove the McDonald’s name, logo, branding, and menu from those outlets, though the
company will retain its trademarks in Russia.
McDonald’s first branch in Moscow opened in 1990, just before the fall of the Soviet Union.
McDonald’s said it will continue to pay local staff while it seeks a buyer for its Russian
operations. Currently 62,000 people work in the company’s Russian restaurants.
McDonald’s stock is down 9% year to date at $245.04 per share.
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